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Buy nowI had this problem and solved it. Perhaps this will be helpful for other folks, though I don't know if its the only situation that can cause the problem...
In my case, the product named in the error had inactive sub-products. After removing them, the error changed to accuse the next product with inactive sub-products of being a duplicate. Eventually, I was able to remove all inactive sub-products and successfully switch to categories.
Steps:
I had already removed my active product hierarchy at this point, so I don't know if any sub-products will cause the issue. But I know the inactive ones did, so hopefully removing them will help folks out before they need to edit a long list of active sub-products...